last minute and 30 seconds. right now we see a gain of about 1 1/2%. it's at 31.25, the highest it's been is 45. the lowest it's been is the pathetic 17, but it's done so well the past couple of weeks. what happens the minute those numbers come out depending on what they are? nicole: right from 17 to 31 bucks, a nice run, up about 40% in the last three months. everybody wants to see what's going on with mobile revenue. mobile ads. that's what's going to be facebook growing point here. that's what everybody is keying in on. david: amazon is not in the negative at all today, doing quite nicely but nowhere near as well as we thought it was going to do last evening. what happened? nicole: you really got a surprise, had the up arrow. a lot of analysts jumping on board, deutsche bank has a buy rating on amazon. liz: let's not ignore qualcomm. it overtook intel in market cap a week and a half ago when intel reported numbers that while they beat the street on certain

metrics, you know, they announced a much bigger than expected spending plan for their capital expenditures, that scared people because the outlook wasn't as strong as people expected. nicole: yeah, qualcomm is pretty flat going into the close here, but the concerns about apple, them not having demand, relates directly. [closing bell ringing] liz: let's look at how stocks finished today. david is right, a pretty fascinating day where at one point we were high moving to the upside and then down. dow jones industrials down 44 points. we have the s&p 500 losing nearly 6 at 1501, at least holding above the 1500 level. the nasdaq was pretty weak most of the session when other indexes were in the green. we see a loss of about 11 points there. the russell 2,000 down 10. david: for the first time in a couple days you saw some real action in the gold pits. gold seeing a big pop today following disappointing gdp data and the latest statement from the federal reserve. while it was up during the regular trading session, it took

a spike higher in the afterhours following that fed statement showing their commitment to keep printing money for a little while anyway. liz: it did help gold. the federal reserve minutes hurt the dollar. they weren't the minutes. they were the actual report of what they were going or not going to do. that was leave rates of course steady. the greenback falling to -- look at this -- 14 month low against the euro. the second day of declines for the dollar but takes the 1.3563 by a single euro, unbelievable. david: that's why i'm planning a trip to europe. all right. treasury yields we keep a close eye on what's happening there, the end of the day, with ten year yield jumping slightly above 2%, as you can see, it's come down a little bit after hours. but again, these are levels that have not been seen for about nine months now. the ten year yield ended the day at 1.99. but again they did tick up above the 2% level earlier. liz: we are waiting on earnings from facebook, due out any moment. we will have full coverage for

you, including an analyst who has had a buy on the stock since back in july when most were fleeing the stock. and before others upgraded it. we will also bring you numbers from electronic arts and qualcomm as soon as they are released. david: electronic arts, i forgot about them, they are reporting as well. also the very latest reading on gdp showing our economy, well, it's moving in the wrong direction or at least it was in the third quarter. a lot of people say it was an anomaly, a lot of other factors like hurricane figured into those numbers, but are we slipping into a recession? some people are beginning to think so. the fed just said growth paused in recent months. i will be asking a harvard professor if he was -- if he thinks we're in a recession. he was president reagan's chief economic advisor. liz: david we have qualcomm numbers. adam has them. we see right now that the stock is at least in the initial moments moving higher. adam? adam: it is moving higher up over 3%. here's why, it's a beat on both fronts liz. earnings per share came in at $1.26. the street was expecting $1.13.

the revenue 6.02 billion, street was expecting 5.9 billion. so qualcomm continues to perform well, especially on revenue. liz? liz: let's keep in mind that qualcomm is in very high end smart phones but they are pushing as paul jacobs the ceo told me in davos last year -- last week, that they are pushing into the so called value phones as well, because that's what the rest of the world is using. we all get caught up in these, you know, expensive samsung phones and iphones, but they are going big on that. adam? david: we should also mention by the way that china itself is one of the big untapped markets for qualcomm. a lot of people think that qualcomm was too attached at the hip to apple, and as apple went, so went qualcomm. as we can see right now, clearly not so. go ahead adam. adam: liz was just bringing up one of the things in our research that we have been talking about with them, they have had double digit quarterly growth year over year when you

compare q1 last year to the q1 before, double digit. that's pretty good. you know, they're going to get some competition from intel. they are trying to catch up on the smart phone chips. but qualcomm doing very well. david: we should get a clue as to sales outlook for current quarter. analysts are forecasting sales of almost 2 billion, 1.96. as soon as we get those numbers in, adam will report on them. 1.96 is what they were expecting. that was the forecasters number. liz: okay. david: we will get those numbers and bring them to you as soon as we hear what they are. let's get reaction from this. chief investment officer is in the pits at the cme. larry, i want to talk about individual stocks, what happened to blackberry today, and what's happening to qualcomm, what might happen to facebook. but first, the gdp numbers in general, they were extremely disappointing, a lot of people didn't realize we were in negative numbers in the last quarter of last year. a lot of this is kind of an

anomaly dealing with the hurricane etc., but doesn't slow growth threaten the stock market eventually? >> yeah, absolutely it does. david you said it correctly, if you x out hurricane sandy and business inventories, defense spending cutting, we're up b 2 1/2% in gdp. that says we're growing, but we're growing at a stall speed. we need growth to be much higher. we need growth metrics to be much higher for the stock market to be lifted from where we are today to perhaps the next level, which would be 1570, 1600. we need gdp at least 3 1/2, 4 percent. we don't see that happening any time soon, but to your point, we do need it to happen. liz: one of the things that suffered was video game sales as people didn't have enough money and they were worried about it. electronic arts numbers are out right now. adam: earnings they beat 57 cents. the street was expecting 56 cents. but revenue fell short 1.18 billion. the street was expecting 1.29 billion. in a statement from the ceo despite a challenging quarter,

we were able to deliver nongap eps at the high end of our guidance range and then he goes on to say we're investing for the future wave of growth that we foresee in digital and con l consul? liz? liz: let me go back to larry. larry, look, i mean the market held up pretty well when gdp showed to grow less than expected. in fact it shrank 1/10 of a percent. let's get to what the trade is here. the fed as it said still all in with helping and pumping up the market with whatever it is. why isn't the trade then to get out of treasuries and go into equities? >> i think right now the fact is we are growing. we are growing at a stall speed and it is something that economists call financial repression. i mean when they continue to buy 85 billion dollars worth of assets every month, it causes people like me and everybody else to get out on the risk

curve and to buy stocks and realize that hey, treasuries really aren't that safe considering that a move, erases all your profit for the year, so you are better off getting into a dividend stock. that's the whole thing why the stock market continues to be so robust even though numbers like gdp come out pretty lackluster by in large. david: larry we did see a pullback in amazon, yesterday, afterhours it was up at one point at double digit, came back today a much more earthly level. it sort of levelled out a little bit. it was still -- had a nice gain. but is there a sense of rationality working its way into the market now? >> yeah, there's some rationale. i mean right now the past couple of weeks, you've just had a weak hand selling, then you had the big buyers buying on any weakness. right now that seems to be changing a little bit. we're seeing correlations continue to drop. that's actually a smart thing that needs to happen in some type of rally that we're seeing. but we are seeing some people

take some money off the table and just wait for the earnings season to, you know, flush itself out to see where they are going to reallocate their assets. liz: we will be watching for yet another earnings report in a minute from facebook just moments away. let's bring in the senior analyst at topeka capital markets. david and i have been sitting here waiting to see that everybody keeps saying and rightly so of course, making money off mobile because more and more people are accessing facebook off that. is that what you are looking for? is there something else as a second choice? >> yes, there are multiple things. the first thing is obviously mobile montization because users are shifting off of desk top on to mobile. investors including myself will be looking for the level of that with regards to mobile, estimating that roughly 24% of advertising revenues will come from mobile this quarter, up from the 14% in the third quarter. i will also be looking for the level of engagement on the site, you know, there's been concern

on facebook of user fatigue, so i will be looking for whether or not daily active users as a percent of monthly active users whether or not that's trending up or trending down. that's the second level i will be looking for. david: victor stay with us. the numbers just came up. we are going through them. it is a little lower. let's go to adam shapiro. adam: earnings per share came in at 17 cents. the street was expecting 15 cents. revenue 1.59 billion. the street was expecting 1.53 billion. they're talking about in the report mobile revenue represented approximately 23% of advertising revenue for the fourth quarter of 2012. up from approximately 14% of advertising revenue in the third quarter of 2012. you heard shibani saying mobile, mobile, mobile. 23% is the figure. david: we want to go to the cme. but first i want to go back to victor anthony for a second. victor it missed on that number, that key number you just mentioned. it got 23% of total ad sales in mobile. that's enough to send it down afterhours. is that a disappointment to you?

>> no, it is not. i mean i was looking for 23.8%. came out 23%. i'm just looking for really the growth. david: it is surprising look how it is down now. that's a pretty significant loss after hours. >> i will have to go through the details of it to see what really concerns investors because the top line number in terms of revenues beat, eps beat, so the headline numbers are pretty good. liz: let me get to larry here as you look more at that, and larry, they match the whisper number of 17 cents. i know the street was looking for 15 cents. but that's not bad for little facebook that's been embattled -- not little, it is huge, but to be so embattled as an ipo and then after that and suddenly it's done pretty well over the past couple of weeks. >> i was listening to fox about half hour ago, you know, it had to be a beat, beat, beat. we needed like 19 cents and over 1.6 in revenue, especially on the revenue side. we needed to see a really big

beat for the stock to go higher. i mean, fundamentally it is a great company. great things are going. a lot of things against the wall. something will stick. if it's down $3 right now and you like the company long-term like i do, a great time to get in right now. david: well ironically this is about the level that many people say it should have started at; right, larry, about 31, between 28 and 31? >> right. all the noise is over with now. all the lock-up has expired. now we're down to business. just imagine the possibilities of being able to search, you know, details on all your friends, this is a great thing. ad revenue is going to go up. mobile, mobile. if it would have hit over 1.6, we would have seen the stock rise. it didn't. that's why it's treated a little bit. -- that's why it's retreated a little bit. good time to get in. liz: at the first blush down 10% for the stock, then it's moderating. let me get back to victor anthony. the engagement numbers meaning how many people are actually

jumping on and using their facebook page. have you seen anything that scares you or that encourages you? victor, are you there? i think we lost victor. so let's go back to larry and ask him the same question. i know he hasn't really had a chance because he's standing there on the floor. but i'm looking at some of these numbers here, and adam, i don't know if you are seeing anything there, but the user growth, that's always something that people look at. they may put it lower than the actual mobile ad revenue, but listen, how many people are actually using these things and the zynga issue we should also bring up. adam: you talk about zynga and the fact that portion of users using zynga is declining on facebook. they are reporting from facebook that excluding share based compensation and related payroll expenses nongap operating margin was 46% for the fourth quarter compared to 55% for the fourth quarter of 2011. things are tightening up there and that may be one of the things that could have investors

worried. david: victor anthony is back with us. what about the payments business? facebook was excited about getting into that. tell us about the future expansion or possibility for growth there. >> that number came in ahead of my estimates for the quarter. -- estimating for the quarter. what they are trying to do is diversify away from zynga. they are promoting their non-zynga game developers. they are making a big push to get those guys to come on to the platform. the second thing, the new e-commerce business that they launched in the fourth quarter. liz: they had done about 100, 112 million before, i think. >> the payments of fees revenues came in at 256 million dollars, above my 235 million estimate. liz: i would say that's significant. that's a nice little business to start. david: you would happy to know victor the stock is fighting back after hours. it dropped down to about $28 a share. the bid after hours is 29.53. it looks like investors are

piecing through this and seeing the bits and the pieces that you were seeing as a positive. >> you know, like i said, overall numbers are positive. advertising growth was much stronger than i expected. and the sequential growth rate in mobile advertising revenue is much stronger than i expected. i think the only pause i could see if anyone is concerned is really the engagement number i was talking about earlier. that was essentially flat and so i think the street was expecting a higher engagement level which is represented by daily active users as a percent of monthly active users. but it is still strong. liz: victor anthony thank you very much. our thanks to larry in the pits of the cme. started again. right after the earnings report. we have seen this come so often. the knee-jerk react bonds which moderates over just a couple of minutes, which it did today. earlier today shibani was up a blackberry event. we know what happened. just that the departure revealed the stocks tumbled.

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the economy comes to life. norfolk southern. one line, infinite possibilities. ♪ david: well, just as tax increases are kicking in, we find out the economy contracted in the last quarter, and even president obama admitted that tax increases are just the wrong medicine for a shrinking economy could we be kick starting a full-blown recession by the new taxes on businesses and individuals? that as a harvard professor mark -- martin feldstein who served as president and ceo of the national bureau of economic research which designates where the economy is or is not in recession. good to see you. thank you for coming in.

>> good to be back with you. david: general question, do you feel like we are sliding back into recession? you calculated the last one before it was announced officially. >> well, i think it is much too early to say. i mean, what we have here is a so-called advanced number. it is going to get revises the government gets better data on exports, better data on inventories. it could swing plus or minus eight percentage point, but it is clear, the economy is quite weak. the consumer confidence number is down sharply. and consumers are going to take a big hit because of increased payroll tax and higher personal income taxes. david: the folks who say this is an anomaly point of good points, consumer spending is not doing bad. durable goods orders were up. business investment is up, capitol spending. homebuilding is looking pretty bright and even though prices came down a tick last quarter. there are improvements in the

economy that may be worked into this number. >> that is all true. the basic fact is that last year, 2012 : gdp growth, fourth quarter of 2011 tough fourth quarter 2012 was only one nap%. there is not a lot of momentum there. we got a boost to a consumer's income in the fourth quarter because people anticipating the higher tax rates were paying out more in compensation, more in dividends. that is going to turn around as we come into the first quarter of 2013. david: the tax increases, as i mentioned in the intro to you, even the president said, a shrinking economy or slow economy, you know what to increase taxes. that is exactly what we're doing, but on the retail and wholesale level, if you will, both on average working folks and ridge job producers as well.

>> absolutely. so, i think as we try to a tackle or as the congress and the administration tried to tackle the deficit problem, we have to be very careful not to make the mistakes that were made in europe, much too much short on contraction. we need to have a policy that will over the coming decade bring down the size of the fiscal deficit, but not over the coming year. david: finally on the fed. we had all this breaking news, so we had to shorten this segment, the fed, you have not been a big fan of what they have been doing. why do you think the fed is going in exactly the opposite direction that should be? >> well, i think there just continuing to buy assets at a tremendous rate, were talking about $85 billion a month to my trillion dollars. they think that by doing that they're helping housing. they probably are, that is not sustainable. i mean, they pushed up house

prices artificially by driving mortgage rates down to the extremely low levels. so i think that they aren't taking serious risks about building a too much liquidity in the banking system that is going to be very expensive and potentially dangerous to unwind. david: professor martin feldstein, we usually like to give you more time. we have some much bikinis we had to shorten this segment. great to see you. come back soon. >> will duke. liz: facebook reporting fourth quarter earnings. let's head back to the cola for the new york stock exchange. trying to fight back in the wake of one tiny disappoint. >> reporter: give sell-off quite dramatically. it had been lower than that, but when you break it down, earnings per share revenue looks good. they beat the street. they also talked about daily

users, 600 million, 20 percent of year-over-year. the monthly active viewers -- users. that was up 25% year-over-year. the obviously some of revenue which represented about 23 percent of their advertising revenue. the graph search, the facebook, android to .0. costs and expenses for one thing that i know is up. that's not good news. david: looks like it settling just around $30, maybe a little bit below. thanks. liz: after long delays we finally get a look at the new blackberry. actually, two new libraries and the unveil came unexpected, at least for the company, a drop in the stock. or going to look at why, and that's next. ♪ she knows you like no one else. and you wouldn't have it any other way. but your erectile dysfunction - you know, that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right.

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david: blackberry's stock was up 4% right up until that exact moment when the two new smartphones were unveiled. at that point, the stock plunged in the other directions. investors clearly don't seem happy with what they saw. liz: shibani, i was laughing. you were at the event. once again, not you, but other business networks hyped this up to the point where you were expecting a fall, exactly. >> i think so. i don't think from anything that i've seen, i have test driven the z-10 and q-10, new blackberry device as couple of times. now i actually have one for myself. i think it is a case of buy on the rumors and sell on the news. i mean if you looked at blackberry's stock, the research in motion stock over the last six months the stock has almost doubled and there is tremendous short interest in the stock. meaning they are betting for the stock it fall. then you finally get the news and that's exactly what happened on the stock.

buy on the rumor, sell on the news. i think that is part of the story. the long-term story however is what will happen when the phone actually gets into the marketplace. i think one of the reasons investors were a little bit concerned today we thought we would get a phone today, much in the same way when apple release as phone, they tell you can preorder it and get it in a couple weeks. with this one, the man on the screen, you can get it certain places. some in march. but we can't tell you exactly when. people don't like that. david: the only problem i have with your analysis, sell on the news, is 12% drop. i mean that's a huge drop. granted we knew, we had walt mossberg coming out in the "wall street journal" today with a pretty mediocre review saying it worked fine but i found it to be a work in progress and specific what he didn't like. there was news out there not being the best thing since sliced bread. why the a 12% drop at the end of the day? >> again i think because you've seen a stock rise

over 120% in nine, in six months. so i think you see a big, a big rise and then also a big fall. the reviews are still mixed. yeah, walt mossberg says he loves the keyboard, absolutely loves it. says a couple other features he liked but again a work in progress and a couple big reviewers out there also naming the feature they like but it will ultimately be up to the consumer. for anyone that was looking out for the end of, or any sort of signal this is the white knight, the white horse to come in and save this company today, you did not get that news. i think that is also factoring into the selloff today. this is not going to save the company in and of itself. they have got to prove themselves and they still have many more months before they can do that. liz: it is not just sentimentality, shibani. so many of us in the fox business newsroom are still hanging on, this is my oldest one, i still won't let go of. david: it is from the stone

age. liz: it is. about eight and a half pounds. side roller. shibani is the lucky pup, she got the 10. do you expect we'll hear talks about blackberry either being acquired, sold, taken private? 70 million customers still on their rolls? >> it is still a very attractive company. there was a note that came out today saying that today's news makes it even more attractive but the problem is it has got a $9 billion price tag attached to it, making it of limited interests to a lot of companies. i asked heinz today, i said there were rumors about lenovo this week. what do you have to say? he says we continue to evaluate strategic partnerships. even in the light of blackberry 10 they're still thinking about strategic ideas. he did not say no. he did not say this was the end of the story. as i said this is not the end of the story even with the two devices released today. there's's still a long winding road ahead for this

company. david: particularly if we see another double-digit drop. that will force their hand on other issues. thank you, shibani. liz: we turn to our market panel. super smart guys concerned about varying levels of market pullback but they have stock picks either way to keep you in the green including one american icon that our money manager calls his pick of the year. you've got to find out what it is next. david: by the way both these guys have apple stock. we'll ask them if they will keep it, sell it, buy more, what? find out why one of the top fixed income strategist around says don't buy u.s. treasurys and where he thinks you should be putting your money. twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i really need is sleep.

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coming perhaps in the second quarter. is there any sector that you think will be somewhat immune to any pullback? >> yes. hi, liz and david. thanks for having me. i think that if you go back and look at 2012, if you go back into the summer, most investors weren't that bullish yet 75% of the return in the s&p came in the second quarter. so we've had quite a run. if you look in the health care sector, this is a great group for the environment like we're in where you get some demographics and some requirements for health care actually helping you. but you also have some demand that will come as a result of the affordable care act. even though that is somewhat unpopular with some investors i think from fundamental analysis standpoint you really can find some names within the sector that will benefit like even as the economy is slowing. medtronic is one company in the med tech space we like quite a bit. for the last two years it has been suffering from secular growth deceleration.

but you have had some cost cutting going on here. we think if you need a pacemaker, if you need sort of some spinal device that is not going to go anywhere. the concern in the entire sector has been around pricing and that information is beginning to clarify. liz: omar is running that company, a super smart guy. he is ready to accept and deal with the medical device tax. here is the three-month chart. looks absolutely gorgeous. let me get to robert luna. while eugene believes we'll see a six to 7% correction, you tell me what you foresee. >> we think you're probably facing more like a 3 1/2 to 4% correction and we're just looking now on a short-term basis primarily based off the 50-day moving average which which has been good support for the s&p 500. that is something we're expecting to happen probably within the next month. the sequestration could be a catalyst for that. but we're really bullish on the overall market. we think if you do see the pullback there is lot of money on the sidelines waiting for that type of

pull back to enter the market. liz: where do you put that money? show us the money. >> if you're looking at, if you're looking domestically, where we think one of the sectors you should be looking at is the energy sector. we like that through the vanguard etf, vde. energy was year was an underperformer. if you look the dividend yield is great right there it is one of the cheapest sectors out there and globally there is a lot of room for expansion here. in the u.s. we're looking about consumption of 22 barrels a day per person here. look at places like india and china where the real growth is. you have consumption under two barrels a day there. there is a lot of opportunity. energy is a long-term story. but we think you should be thinking globally as an investor and really where the opportunity is today, and we think the greatest opportunity in the next 10 years is really in places like emerging markets and better yet, frontier markets. countries like vietnam where you have tremendous growth and evaluations are much cheaper than we're experiencing here. david: wow, vietnam.

who would have thunk several years ago. i don't know about liz, but three out of the four people here have apple stock. myself included. gene, it is kind of a sore spot to.that out to investors but you've got it now. do you hold it? do you buy more of it at these low prices or, do you dump it? >> i think if you're a holder in apple stock, if you already own the stock you hold it here and wait for the news to settle. if you don't own apple stock i think this is compelling valuation to enter into the stock because if you're a short-term investor looking over the next few months there is really no telling this stock will go. basically sentiment-driven right now the sentiment is somewhat negative. but if you really look at the facts here, iphone 5 although it has had a weak launch. it's, a lot has to do i think with some of the adapters and people taking a little longer to move over into it. the overall story here of dominant position hasn't really changed. even though samsung has made

some inroads i think if you have 2-to-3-year time horizon in the security you will look back at this time period and wish you had invested here. david: if you've got the stock, you don't add to your portfolio of apple right now? that is for people who are thinking of getting in. >> that is adage don't try to catch a falling knife. apple valuation was compelling to 500. down sub 430. today it is over 460. near term i wouldn't try to pick the absolute bottom. you feel pretty badly and go in at 460 and goes down to 400. liz: yeah. get to robert his peak pick. week, not pick of the month, but pick of the entear year. get the drum roll. go. >> the pick of the entire year is disney. if we had one stock to own domestically is disney. its ability to play the global economy and the recovery. we like about disney, owns, land, sea, tv and internet and a dominant player in all.

its best years are ahead of it. if you're talking about land the theme parks are hitting all cylinders. they are getting ready to open a new theme park in 2014 in shanghai, expected to attract over seven million visitors the first year. espn looks great right now. look at disney cruises. they're booked out almost entirely a year in the a vans. internet mobil revolution content is king. disney owns content of the it is a great stock. valuations are cheap. we think there is long way to go in disney. david: robert loon florida, eugene prophet, thanks very much. we're keeping a close tab on facebook. at 5:00, 15, 20 minutes from now they will begin their conference call. we are not sure at this point whether zuckerberg will be on the call. we'll let you know as soon as we find out. liz: up next we turn to fixed income investing with one of the best in the business, guy lebot tells us three things you have to keep an eye on and where to put your money now and it is not in u.s. treasurys.

david: also an exclusive look at a a leaked hospital video that mocks the health care law. this was put out by a hospital. raises a lot of concern about patient care. liz macdonald with the latest on that. ♪ .

david: people are getting nervous about facebook right after the numbers came out but our analysts, you heard it here first, said don't worry the stock will come back. that is exactly what was happening with the point. it was trading above after-hours above what it end the day at. it ticked below that number. it is regaining a lot of its footing as investors look through the numbers and decide it is not all bad what they saw and in fact trading okay. at 5:00, in 15 minutes we'll have the conference call of

facebook. zuckerberg might be on the call. we'll let you know. liz? liz: thank you, david. the federal reserve decided to keep its stimulus in place again, this has been going on for a while, saying economic growth is stalling or growing slowly or. while the fed doesn't think this particular pullback will last, what does it mean for fixed income you might own? we're not just talking about treasurys here. bringing in guy lebot, janney fixed income strategist. he is in philadelphia. guy, first of all what do you anticipate will be the biggest rebound effect from this negative, albeit slight gd. report? >> well, to be honest i think the markets are really interpreted this as in the past, as one-time item. as we heard numerous times throughout the day today, if you break it down, really the core components of economic growth, namely consumer spending and business investment were doing okay in the quarter once you take out the effect of inventories and a major,

major pullback in defense spending. numbers as you see by the numbers, especially the bond market haven't really attributed very much long-term growth impacted by this number. liz: the three biggest things, that is what we really want to get to. the three biggest thing investors need to keep their eye on if they're interested in fixed income, we remind everybody that has a much broader definition than basic u.s. treasurys. >> the three things are policy, policy and policy and there are different types of policy of course. number one is fiscal policy. we saw a lot of drama that unfolded about a month or so ago here and how that impacted the market. we have impasse within congress and impending fiscal cliff, created a really, really strong safety bid for treasurys. that could reemerge next may depending how the sort of updates to the fiscal situation are handled. number two so monetary policy at federal reserve. they didn't do anything but there is potential toward the middle. year the fed could say, maybe this bond-buying thing

wouldn't work all that well. third type of policy stems from the ecb and the eu, continuing their level of support and their level of fiscal austerity with the content of europe. that hasn't affected u.s. in some months here but could come back later in 2013. liz: you're advising stay away from u.s. treasurys. go toward corporates. guide us. there is aaa. there is double b, b-plus, b-minus. i don't think it goes down to f. let's get to where you find the parameters and what you like within those parameters. >> right. so the key here is all those policies i talked about a minute ago. what they do, they affect the level of interest rates. they don't have a great impact on corporate health in particular. and so, as a result, when we look at corporations and municipalities, there are sort of internal health, fundamental health is doing quite well. liz: are you okay with junk here? >> guide people, are you okay with junk or do you like to stay within a certain level or above a certain level? >> well, our favorite areas of the bond market is the credit markets right now are

bbb investment grade corporates and double b, rated high yield corporates. midlevel of quality predominantly. liz: do you like any sovereign debt that is out there? any different countries other than the u.s.? >> well, i think our biggest pick on the sovereign debt side would be australia. that is for two reasons. number one their interest rate regime is a little higher than the u.s. or europe. they have the potential to benefit from currency appreciation particularly if china growth keeps up and they continue to be absorb commodities on the northern coast. liz: stay away from treasurys, even though the yield popped up slightly. went above 2% for the first time in quite a while. still at 1.997 or 95, depending on the second you look at it. guy, thank you very much. >> thank you, liz. liz: anytime. david, over to you. david: you may have read the new health care law could result in some patients being denied care. wait until you see an exclusive video that fox business has obtained.

liz macdonald joins us after the break for a story you do not want to miss. ♪ . all stations come over to mission a for a final go. this is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.

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liz: fox business obtained a brand new exclusive video showing a new jersey hospital spoofing how health reform can make more money for doctors by not readmitting patients. david: very strange video. here with more is liz macdonald with emac's bottom line. >> morristown medical center. what you're going to see in this video spoof which we'll show you in just a matter of seconds you will hear the term, accountable care organization. that is government speak for a new health reform network for doctors and hospitals but the lyrics to the song are set to the waylon jennings song, looking for love. take a listen. ♪ ceo for the all the right reasons and cro decreasing readmissions. sharing the savings with practices, sure seems fair

♪. ♪ long as we follow the policy set down by medicare. cms a dreaming of ♪. >> so what cms stands for is the center for medicare & medicaid services. so what is happening is, with health reform with the acos, they're trying to make more money basically doing what is called cost savings. we talked to doctors at the hospital. they're saying wait a second. this actually rewards doctors and medical workers for doing less care. you get decreased access to care. it is totally the opposite of what the president wanted. basically, increased access to care. doctors are telling fox business essentially, the less patients that are readmitted, the less exams, tests or referrals, the more government money there is in the pot for the hospital and for the doctors. so that's the math there. they are essentially saying these new acos have to adhere to cost controls and

quality controls but we talked to the president of the hop hospital, which talked to the hospital spokesperson. here's what they're saying. essentially this is a silly fun spoof about preventing readmissions as you saw. certainly not meant as a mockery. about working together in partnership and the like. the president of the hospital is saying look, when you see the essentially the money exchanging hand, we have to actually split that money, half that money with the federal government if there are cost savings. he is saying the video is taken out of context and that the laptops are for the new health exchange networks and the like. when you talk to the doctors who work there they say wait a second, watch out, this may not be such a great thing for health care. >> like to know how long patients in the emergency room were waiting while they made the video. >> that's a great point. liz: what they doing? >> what were they doing. when you see the woman prevented from reentering. she is hospital work and so are the woman. they are working for the hospital they say it is a silly spoof. the trend basically medical care will be managing your illness at home. that means physician

assistants and nurses helping you. that's the deal. david: wow, hospitals will be crowded. emac, appreciate it. there are signs being taken down in here in new york city that could make things a little more noisy. why? that story's next. ♪ [ male announcer ] i've seen incredib things.

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